This person's testing has blake3 at 250 cycles for small hashes. It's not a thousand times slower. And for a lot of uses, 250 cycles is plenty fast. That's like one uncached memory access.
That test does mention batching but I don't think it makes a particularly large difference, the paper shows 4 cycles per byte for 64 byte inputs and I don't think they're getting fancy: https://github.com/BLAKE3-team/BLAKE3-specs/blob/master/blak...